>Thus, when a bank has more liabilities than assets to a point below the required reserve percentage, 10%, it can borrow reserves from another bank and pay the

>Thus, when a bank has more liabilities than assets to a point below the required reserve percentage, 10%, it can borrow reserves from another bank and pay the interest rate set by the Fed for the benefit of doing so. Where did the author get this 10% number? If you look at China it's 11%. India is 4% Hungary is 1% Turkey is 25% You might say, 'oh they mean USA' But USA is at 0%. https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm The US banks are currently lending out infinite money. There will be limits and cycles in terms of being able to lend out but you can lend out infinite and sell the liability.